Major stock indices in Europe show moderate gains

European stocks traded with a moderate increase, helped by positive corporate reporting of a number of companies and recovery of oil prices.

Certain influence on the dynamics of trade had statistics on Britain. The Office for National Statistics said that industrial output rose by 0.1 percent compared to May, confirming the forecasts of economists. At the end of May the production declined by 0.6 percent (revised from -0.5 percent). Output in the manufacturing sector decreased by 0.3 percent, which was slower than the fall of 0.6 percent in May. Experts predicted a decrease of 0.2 percent. Annual industrial production growth accelerated to 1.6 percent, in line with expectations, compared with 1.4 per cent. Manufacturing output increased by 0.9% y/y, after rising 1.5 percent in May. Analysts had expected an increase of 1.3 percent. For the three-month period to June, the volume of industrial production increased by 2.1 percent. This was the highest growth since the third quarter of 1999.

A separate report showed that the deficit in trade in goods widened in June to 12,4 billion in May (revised from 9,880 billion). Last change reflects an increase in exports by 1.0 billion pounds to 24.6 billion., as well as increased imports of 1.8 billion pounds to 37.0 billion. The surplus on trade in services remained unchanged at 7.3 billion pounds. As a result, the overall trade deficit amounted to 5.1 billion.

In focus were also statements by the Bank of England and member of the Monetary Policy Committee Ian McCafferty, who pointed to the possibility of expanding monetary stimulus measures if the state of the British economy deteriorates. Recall, last week the Bank of England lowered the benchmark interest rate to a record low level and increased the volume of bond purchases to soften the negative impact of Brexit. In general, the last stimulus program indicates a strong concern for the Bank of England officials about the economic outlook.

The composite index of Europe's largest companies Stoxx 600 added 0.2 percent. Over the last four sessions the index rose by 1.8 percent. The trading volume today is 39 percent lower than the monthly average.

Altice cost rose 12 percent amid reports of increasing profits. The company said that the increase was due to the good performance in Portugal and the USA.

Voestalpine AG Shares fell 3.2 percent, putting pressure on the shares of mining companies. Today, the company reported a 64 percent decline in profits.

Quotes of Amec Foster Wheeler Plc surged 13 percent as revenue and profit of the company exceeded the forecasts of experts.

Share of SFR Group SA rose 12 percent after Altice said it plans to cut 5,000 jobs in the French company.

Cost of Legal & General Group Plc fell 6.5 percent, as the profit margin was lower than analysts' estimates.

At the moment:

FTSE 100 +22.27 6831.40 + 0.33%

DAX +51.54 10483.90 + 0.49%

CAC 40 +21.14 4436.60 + 0.48%